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ARCHIVED - Broadcasting Decision CRTC 2002-39

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Broadcasting Decision CRTC 2002-39

CFMT-TV, a division of Rogers Broadcasting
LimitedVancouver, British Columbia

Applications 2001-0795-5 and 2001-0782-2
15 October 2001 Public Hearing
Vancouver

New multilingual ethnic television station to serve Vancouver

The Commission, by majority vote, approves
the application by Multivan Broadcast Corporation for a new television
station in Vancouver. The competing application by CFMT-TV, a division of
Rogers Broadcasting Limited, was technically mutually exclusive, and is
denied.The new station will be owned by local investors of ethnic
origin with strong broadcasting, business and community backgrounds.

The new station will contribute to the
community through the broadcast of diverse programming for and by Vancouver's
ethnic communities, and will enjoy the support and participation of an
advisory board made up of local residents.

The Commission considers that the approval of
Multivan as a locally owned and managed ethnic broadcaster will contribute to
a diversity of voices in over-the-air ethnic television broadcasting in
Canada. Notwithstanding the strength of the CFMT-TV application, the
Commission considers that local and ethnic ownership of this over-the-air
television station will enhance the attainment of the objectives of the
Ethnic Broadcasting Policy and that licensing Multivan is an important
step in recognizing the increasing diversity of Canada.

The new station will offer:

· at least 60% ethnic programming during each month,

· entirely ethnic programs between 8:00 p.m. and 10:00 p.m. daily,

· a level of at least 60% Canadian programming overall, and 50%
during the evening hours (6:00 p.m. to 12 midnight),

· at least 55.5 hours per week of local programming,

· programming directed to at least 22 ethnic groups, using a minimum
of 22 distinct languages,

· 28 hours of original news programming each week, half of which will
be locally-oriented,

· a minimum of 10 hours each week of programs acquired from
independent producers in British Columbia,

· foreign ethnic movies, drama, comedy and sports programming, and

· English-language programming that will reflect multicultural
diversity, in line with the Commission's position on such programming, set
out in the television policy (Public Notice CRTC 1999-97).

In this decision, the Commission sets out the
background to the process in which the two applications were considered,
examines the strengths of each proposal and the reasons for the approval of
Multivan. It also describes the programming and operational plans for the new
station, and the ways in which the new service will provide a valuable
addition to the Vancouver media.

Background

The Order-in-Council, the call for
applications and the public process

1.

In Order in Council P.C. 2000-1551 dated 13
September 2000, the Governor in Council requested that the Commission report
on the earliest possible establishment of an over-the-air television service
to reflect and meet the needs of the multicultural, multilingual and
multiracial population of the Greater Vancouver Area. In response to the
Order, the Commission issued Public Notice CRTC
2000-145 on 20 October 2000,
inviting written comments on the matter from the public. The Commission
received over 500 written submissions, virtually all expressing strong
support for the establishment of an over-the-air ethnic television service in
Vancouver.

2.

Subsequently in Public Notice CRTC
2001-31, dated 28 February
2001, the Commission issued its findings on the need for an ethnic television
service in Vancouver. It noted that, although ethnic television programming
is available in the market, very little is locally produced or locally
oriented. A good portion of what is available is foreign, and is distributed
by cable or satellite, thus obtainable only through the payment of a fee in
addition to the cost of monthly basic service. The Commission concluded that
the licensing of an over-the-air television service that would reflect the
needs of the multicultural, multilingual and multiracial community of Greater
Vancouver was a priority. It also determined that the market could support
such a new service. Accordingly, in Public Notice CRTC
2001-32, the Commission issued
a call for applications under its Ethnic Broadcasting Policy, for an
over-the-air ethnic television station to serve the Greater Vancouver Area.

Regulatory and policy framework for ethnic
broadcasting

3.

The Broadcasting Act (the Act), sets out
a number of objectives for the regulation of broadcasting in Canada,
including the stipulation that the Canadian broadcasting system should
portray the circumstances and aspirations of all Canadians and reflect the
multicultural and multiracial nature of Canadian society. In pursuit of that
objective, the Commission has, among other things, licensed numerous ethnic
radio services across the country, and two ethnic conventional television
stations. CJNT serves Montréal, and CFMT-TV operates in Toronto with
retransmitters in Ottawa and London. In addition to conventional broadcasting
services, the Commission has also licensed a number of ethnic specialty
services.

4.

The principal components of the Commission's
policy on ethnic broadcasting were set out in Public Notice CRTC
1985-139, entitled A
Broadcasting Policy Reflecting Canada's Linguistic and Cultural Diversity.
The Commission reviewed the policy in 1999 and published its revised
Ethnic Broadcasting Policy (the ethnic policy) (Public Notice CRTC
1999-117). Among other things,
the policy provides a framework for the licensing of an array of radio and
television services in languages relevant to numerous ethnocultural
communities.

5.

The Commission considers that the electronic
media remain powerful tools for shaping Canadian identity and that, within
the broadcasting system, programming for and by ethnic communities is vital
to enabling the participation of all Canadians in society. The Commission is
of the opinion that ethnic ownership of services within that system will
result in greater participation in the media, and by extension, greater
participation in society by members of ethnic communities. The Commission
concludes that such participation will enhance the ability of ethnic
Canadians to have an effective influence over how images and ideas about
ethnic communities are presented and how those groups are portrayed to
Canadians in general.

Ethnic broadcasting services currently
available in the Vancouver market

6.

The Vancouver and Victoria extended market is
currently served by five conventional radio stations offering ethnic
programming. There is an additional five radio services that employ the
subsidiary communications multiplex operations (SCMO) facilities of existing
FM stations to provide a variety of ethnic programs to audiences equipped
with SCMO decoders.

7.

In addition to these radio services, five
different ethnic specialty television services are available in the market by
cable or through the national direct-to-home (DTH) distributors Star Choice
and Bell ExpressVu: Talentvision, a predominately Mandarin-language service;
Fairchild TV, a predominately Cantonese-language service; SATV, a service
that provides programming in South Asian languages; Telelatino, an Italian-
and Spanish-language service; and Odyssey TV, a Greek-language service.

8.

A special programming service offered to
subscribers of Shaw Cablevision in the Vancouver area also directs
programming to the ethnic communities of White Rock, Delta, Ladner, Vancouver
and North and West Vancouver. The linguistic profile of this service changes
seasonally, but it tends to serve between 20 and 25 language groups at any
given time.

9.

Finally, as part of a benefits package related
to the recent acquisition of CKVU-TV Vancouver by CHUM Limited, the
Commission accepted a commitment by CHUM to produce 12 hours per week of
local non-news programming, of which six hours would be ethnic and/or
aboriginal programming.

Assessment of the applications to serve Vancouver

10.

In response to the call for applications to
serve the Greater Vancouver Area (Public Notice CRTC
2001-32), the Commission
received competing applications from Multivan Broadcast Corporation
(Multivan) and from CFMT-TV, a division of Rogers Broadcasting Limited
(CFMT-TV). Since both applicants proposed to use the UHF channel 42C in
Vancouver, the two applications were considered to be technically mutually
exclusive.

11.

The five principal shareholders of Multivan, a
British Columbia corporation, are Robert H. Lee (22.5%), James Ho (22.5%),
Geoffrey Y. W. Lau (22.5%), Joseph Segal (22.5%) and Douglas Holtby (10%).
The shareholders include local investors of ethnic origin with extensive
local business experience. One shareholder has extensive experience in
mainstream television broadcasting, including in Vancouver; another has
experience in local ethnic radio broadcasting, including ownership in CHMB
Vancouver.

12.

CFMT-TV is a division of Rogers Broadcasting
Limited (Rogers), which is in turn part of Rogers Communications Inc. (RCI),
one of the largest companies in the Canadian broadcasting system. RCI is
involved in several sectors of Canada's broadcasting industry: radio,
television and distribution undertakings. Rogers owns and operates a number
of radio stations in markets across Canada and is also the licensee of the
multilingual and multicultural television station, CFMT-TV Toronto. CFMT-TV
also has retransmitters serving London and Ottawa.

13.

As part of its consideration of the applications
for a new ethnic television service in Vancouver, among other things, the
Commission examined the business plans of each of the applicants, programming
plans, the potential synergies available to each applicant, plans for
advisory boards and public input, other initiatives such as scholarships, and
proposals for investment in and use of independent production. It also
examined various issues raised in the proceeding surrounding the ownership of
each applicant.

Business plans

14.

Both Multivan and CFMT-TV presented viable
business plans. Each applicant also demonstrated clearly the financial
capacity necessary to fulfil its respective business plan.

15.

Multivan expected to attract advertising dollars
from a variety of ethnic-language advertisers, including those new to
television and those who cannot afford current market rates. By the fourth
year of operation, Multivan expected that Chinese and South Asian advertisers
would account for $2 million and $1.8 million, respectively, in advertising
revenues.

16.

CFMT-TV also expected to attract revenues from a
variety of ethnic-language advertisers and projected that its proposed
station would garner approximately $1.8 million in Chinese-language
advertising and $1.4 million in South Asian advertising in its fourth year of
operation. These estimates were based on individual rates specific to each
community, and sell-out rates based on the experience of the applicant's
Toronto ethnic television station.

Programming plans

17.

Both applications offered balanced and
well-rounded plans for ethnic programming, proposing to offer quality
programming in a wide variety of genres, and targeted to a large number of
groups, with an emphasis on news and locally-oriented programs. While
Multivan proposed to offer a lower amount of English-language, non-ethnic
programming each week (40 hours) than did CFMT-TV (50 hours per week), both
applicants committed to provide at least 60% ethnic programming.

18.

Multivan's programming plans called for service
to at least 22 distinct ethnic groups, using a minimum of 22 languages, and
accepted both commitments as conditions of licence. The applicant stated that
100% of all programs between 8:00 p.m. and 10:00 p.m. would be ethnic, and
accepted a condition of licence to that effect. While it stated its intention
to broadcast more than 60% ethnic programming, starting with 68% per month,
Multivan committed to the mandated level of 60% on a monthly basis, set out
in the Television Broadcasting Regulations, 1987 ("the Television
Regulations").

19.

CFMT-TV proposed a service to be known as LMTV
(Local Multilingual Television), that would offer programming directed to 24
distinct ethnic groups in 24 languages. The applicant indicated that it would
accept a commitment to serve at least 22 ethnic groups using a minimum of 18
languages, as conditions of licence. CFMT-TV committed to devote 60% of all
programming each month to ethnic programming, as mandated by the Television
Regulations. As part of its application, CFMT-TV also stated its intention
that 100% of all programs between 8:00 and 10:00 p.m. would be ethnic
programs, however during the hearing, it agreed to accept a condition of
licence that 75% of all programs broadcast during that time period would be
ethnic programs.

20.

Each of the applicants also committed to
broadcast the minimum level of Canadian content required by the Television
Regulations (60% overall, and 50% in the evening broadcast period).

Synergies

21.

Each of the applicants has potential synergies,
specific to its corporate structure. One of Multivan's principal shareholders
also has extensive ownership ties to Mainstream Broadcasting Corporation
("Mainstream"), licensee of Vancouver ethnic radio station CHMB. According to
Multivan, this relationship will provide efficiencies in the sale of local
advertising and the sharing of local news gathering resources. In addition,
the applicant indicated that Mainstream's understanding of the local ethnic
advertising market would be a valuable asset. The applicant also stressed
that its principal shareholders have extensive connections throughout
Vancouver through their lengthy involvement in community affairs and other
businesses.

22.

In the Commission's view, CFMT-TV's proposal for
Vancouver would benefit from its expertise in operating an ethnic television
station, and in particular from the ability to access ethnic programming
produced for CFMT-TV Toronto and made available in Vancouver at no cost, as
well as the shared acquisition of program rights to non-ethnic programming
from third parties. In addition, there could be advantages in selling
national advertising for combined broadcast in Toronto and Vancouver.

Advisory boards and feedback mechanisms

23.

Each applicant presented plans for an advisory
board that would serve as a bridge between the community and station
management, and provide feedback on programming, budget and other activities.

24.

Multivan's thirteen-member advisory board is in
place, and has already provided input on matters such as the programming
proposals and community relations for the new station. The Multivan board is
made up of representatives of a variety of ethnic groups, with varied
experience in community affairs, ethnic broadcasting, other media, culture
and business.

25.

CFMT-TV's application proposed an eight-member
board and noted that a Chairperson and a Vice-chairperson had already been
appointed.

26.

In addition to plans for the use of advisory
boards, both applicants detailed plans for receiving feedback and input from
audiences. The feedback mechanisms include the use of web-sites, telephone,
e-mail, roundtables, focus groups, town hall meetings, and information
co-ordinators.

Other initiatives

27.

Both applicants proposed to offer scholarships
to aid in the development of young ethnic talent in the fields of journalism
and broadcasting. Multivan proposed to offer a minimum of $210,000 over the
licence term, and CFMT-TV promised to spend $500,000 over the same time
period.

28.

CFMT-TV proposed to offer a total of $500,000 in
direct support to community groups for the production and broadcast of
third-language public service announcements, and to provide $1 million in
funding over the licence term to non-profit community groups serving
ethnocultural communities.

29.

The CFMT-TV proposal also included plans to
spend $1 million over the licence term for an independent "portrayal
ombudsman". The plans for the ombudsman's role included a mandate to deal
with complaints concerning the portrayal of ethnocultural groups in the
electronic media in British Columbia.

Independent production

30.

The two applicants offered the same number of
hours of original independent production to be broadcast. The greatest
difference between the applicants' plans for independent production is the
size of their respective commitments to fund and develop productions.
Multivan committed to expend $4.5 million for funding, plus an additional
$861,000 for development over the licence term. Multivan also proposed that a
portion of $900,000 of unallocated programming expenses would also be used
for independent productions.

31.

CFMT-TV proposed to expend $27 million for
funding and development of independent third-language productions.
Productions funded through this proposal would also be licensed for broadcast
on CFMT-TV in Toronto, Ottawa and London. The applicant undertook to air
these productions on the proposed service on Sundays at 8:00 p.m.

Ownership of an ethnic television station

32.

The nature of the ownership of the proposed
stations emerged as one of the key differences between the two applicants in
this process. While both proposals called for local management, Vancouver
residents, a number of them also members of Vancouver's ethnic communities,
own Multivan; this is not the case for CFMT-TV.

33.

At the hearing, Multivan expressed its strong
belief in the value of local ownership, stating:

".in the face of industry consolidation and convergence, it is also in
the public's interest to ensure a balance in the system, and to encourage
new ownership of broadcasting undertakings in Canada. We believe all of
this to be particularly true in Western Canada where consolidation has
eliminated the greatest number of local ownership voices."

34.

While Multivan agreed that there was no reason
to believe that a conventional television station with ownership outside of
the community could not do a good job of serving the community, it noted
three factors that, in its view, would make local ownership of an ethnic
station a better choice than non-local:

· a locally-owned television station would have a better understanding
of the needs of the local market,

· local ownership would promote local production, and

· since the reality of ethnic communities in different Canadian cities
varies, ownership in the community would offer a more complete
understanding of those communities.

35.

Various interveners supported the idea of local
ownership, embodied by the Multivan application. David G. McLean stated at
the hearing:

"There's an old maxim in business, the best management in the world is
the shadow of the owner coming through the door.. Local ownership in my
opinion is the key to success of a multicultural channel, and the people
who own it locally have to be successful. They have to have a track record.
Each of the people that are behind - and there are five major principals
behind this application. Each of them in their own right is highly
successful."

36.

CFMT-TV and other interveners expressed the view
that local ownership was not necessarily the determining factor. The
applicant stated that local ownership is:

"something that has to be added into the mix and certainly considered
and weighed. What the people we've talked to.I mean literally thousands of
people now, what really counts for them is what they see on their
television station."

37.

The applicant also stated:

".it's really the connection you have with the community and your
ability to reflect their voice and their vision, as opposed to the straight
ownership question."

38.

Multivan noted that all decisions concerning the
station would be made in Vancouver. CFMT-TV stated that certain business
decisions would be made in Toronto, albeit with input from Vancouver
management.

39.

As noted, the majority of Multivan's owners are
members of Vancouver's ethnic communities. Paul Pahal, in noting that the
owners of Multivan were ethnic, stated:

"was that not the mandate for the station to exist?.(it) would be the
only station owned by the very people it serves. They will no longer have
access to the airwaves, they'll own the airwaves, have a voice and be able
to make a big change. It will reflect the idea that you don't merely have
to work and fit in, but eventually that you may have an opportunity to run
and contribute greatly, positively to society."

40.

CFMT-TV's position, supported by a number of
interveners at the hearing, was that ethnic ownership was one of a number of
things to be considered in awarding the licence, and that its experience with
Vancouver's ethnic communities was an important factor.

The Commission's conclusions

41.

The Commission concludes that either of the two
applicants would have been equipped to establish an ethnic television station
and to provide a viable service to the ethnic communities of Vancouver.

42.

The Commission recognizes that Rogers
Broadcasting Limited, as licensee of the successful multilingual television
station CFMT-TV Toronto, has experience in providing an ethnic broadcasting
service in one of Canada's largest ethnic communities. The Commission also
acknowledges the potential value of CFMT-TV's proposed funding for
independent production, an important component of its proposal. The funding
initiative could have contributed to a strengthened independent ethnic
production industry, given the lack of funding currently available to
producers of ethnic programming. A majority of the Commission is of the view,
however, that the applicant's commitment to the scheduling of productions
funded by the proposed initiative leaves doubt as to the extent of the on-air
exposure of any resulting programming on the proposed service.

43.

The Commission took the qualities of the CFMT-TV
proposal fully into account, and balanced the experience, synergies and
funding proposals presented by that application against the significant
benefits of local and ethnic ownership attached to Multivan's application.
The Commission is also confident that Multivan's programming proposals, its
commitments to work with local producers, its representative advisory board,
and its solid financial footing will contribute to enhanced television
diversity in Vancouver.

44.

The Multivan ownership structure offers a team
with broad and successful business experience, both within the broadcasting
sector and in other fields. The ownership team also offers ethnic influences
and extensive experience in Vancouver community affairs. The owners are
high-profile members of their communities who live in and contribute to
Vancouver.

45.

In coming to its conclusion, the Commission also
noted the strong support for the Multivan application, expressed in a variety
of interventions from a wide diversity of ethnic communities, producers and
community groups in Vancouver.

46.

New, dynamic, and creative participants often
introduce fresh concepts to the broadcasting business and offer new
approaches to programming. The Commission is satisfied that, with the
approval of Multivan as a new local ethnic television broadcaster, the
over-the-air ethnic broadcasting system will have the better opportunity to
evolve, grow and prosper through diversity. In addition to these potential
advantages, the Commission considers that over-the-air ethnic television
broadcasting, traditionally the highest revenue-producing component of the
ethnic broadcasting sector, will benefit from the diversity of ownership that
the entrance of Multivan will represent.

47.

The Commission reiterates that the essence of
the Ethnic Broadcasting Policy is to encourage the reflection of local
communities, both to themselves and to the wider world. The Commission
considers that financially strong, local and ethnic ownership, as represented
by Multivan, will foster the representation of a variety of local
communities, a reflection moulded by the very members of those groups. The
Commission concludes that, given the community focus of an ethnic station,
local ethnic ownership takes on special and vital importance.

48.

A majority of the Commission has come to the
conclusion that there are clear and undeniable advantages to the local and
ethnic ownership of an ethnic television station, and that these advantages,
present in the Multivan proposal, outweigh the positive attributes of the
competing application by CFMT-TV. The advantages include:

· the visible presence of owners in their own communities as well as the
community at large,

· the substantial involvement of the owners in the community and the
accountability to the community that flows from it,

· pride in local ownership,

· local decision-making,

· a clear understanding of the local ethnic market, and

· responsiveness to the unique communities to be served.

49.

These advantages take on a particular and
decisive importance when considering the conclusions reached in Public Notice
CRTC 2001-31:

"The vast majority of parties submitting comments strongly believe that
the licensing of a new, over-the-air ethnic television service with a
strong local component is essential."

50.

Notwithstanding the strength of the CFMT-TV
application, the Commission considers that local and ethnic ownership of this
over-the-air television station will enhance the attainment of the objectives
of the Ethnic Broadcasting Policy and that licensing Multivan is an
important step in recognizing the increasing diversity of Canada.

51.

For all of these reasons, the Commission, by
majority vote, approves the application by Multivan for a broadcasting
licence for a multilingual, ethnic television programming undertaking at
Vancouver. The majority is of the view that licensing Multivan is the better
means of achieving the objectives of the Broadcasting Act, the Order
in Council and the call for applications to serve Vancouver. The Commission,
by majority vote, therefore denies CFMT-TV's application.

Description of the new station

52.

Multivan's station, "MVBC" will be an
over-the-air television service, offering ethnic television service to
Vancouver. MVBC will reflect ethnic communities by directing a minimum of 60%
of all of its programming to at least 22 distinct ethnic groups. Some ethnic
programs will be in the English language, and at least 50% of all programs
will be broadcast in one of 22 third languages. Multivan will devote at least
60% of each month, and, by way of a condition of licence, 100% of each
evening between 8:00 p.m. and 10:00 p.m., to the broadcast of ethnic
programs. Multivan stated its commitment to exceed the 60% requirement,
starting with 68% ethnic programming in its initial schedule.

53.

Multivan also committed to reflect multicultural
and multiracial diversity in their non-Canadian English-language programming,
in line with the Commission's interest in ensuring that broadcasting services
reflect the nation's diversity. The licensee's commitment will ensure that
the service presents multicultural and diverse programming throughout the
day.

54.

As part of its application, Multivan made a
commitment to work with various ethnic producers with whom it had already had
discussions. Multivan also plans to offer some ethnic programming in English
that will focus on the multicultural entertainment scene in Vancouver. The
applicant also stated its belief that the new station will appeal in
particular to young people.

55.

Like all Canadian television stations, MVBC will
be required by the Television Regulations, to devote a minimum of 60% of the
broadcast year to Canadian programs, and to devote at least 50% of the time
between 6:00 p.m. and midnight to Canadian programming.

56.

The new station will serve the local ethnic
communities with an emphasis on locally oriented programs. An essential
element of Multivan's programming plans was its commitment to broadcast at
least 55.5 hours of local programming each week. The Commission expects the
licensee to adhere to its commitment to broadcast a minimum of 55.5 hours of
local programming each broadcast week. The licensee defines a "local program"
as one that has been produced in the Greater Vancouver Area.

57.

Multivan will provide 28 hours of original news
programming each week, plus a weekly, two-hour business report in Cantonese.
All news will be delivered in third languages, except for seven hours each
week of English-language news directed to the South Asian community. Multivan
will use nine news vehicles, two satellite trucks and two production trucks
to gather local news from the lower mainland of British Columbia. The new
station will also report from Victoria whenever the British Columbia
legislature is in session. Approximately half of all newscasts will focus on
local news, although national and international news, together with feature
stories exploring issues related to police, legal, education, immigration,
health and political matters, will also be broadcast.

58.

The non-news programming to be featured on MVBC
will consist mainly of lifestyles, current affairs, entertainment, children's
programming, light drama, health and wellness, cooking programs, comedy and
music programming. The new station will offer approximately 12 hours each
week of foreign ethnic programming consisting of light drama and comedy in
Hindi, Cantonese and/or Mandarin languages, as well as international sports
and international movies. In addition to the foreign ethnic programming,
approximately 40 hours of foreign non-ethnic programming will be broadcast
each week.

59.

As set out in the appendix to this decision, the
Commission expects the licensee to ensure that at least 10 hours of
third-language programming on MVBC during each week (with not more than five
hours of repeated programs) is produced by independent producers from British
Columbia.

60.

Interventions to the Multivan application were
submitted by the licensees of the ethnic specialty services Fairchild and
Talentvision, which serve the Chinese communities, and Asian Television
Network, which serves South Asian communities. The interveners expressed
concerns about potential competition between their services and a new
over-the-air service targeted to the same ethnic groups. In response to those
concerns, Multivan raised the possibility of accepting limits on programming
directed to the two largest individual ethnic groups in the Vancouver area.
Specifically, Multivan indicated willingness at the hearing to accept some
limit on programs in South Asian and Chinese languages. The Commission has
determined that limits on such programming are appropriate, and conditions
of licence specifying these limits are set out in the appendix to this
decision. The Commission is satisfied that these limits are generally
consistent with the amounts of such programming contained in the licensee's
proposed programming schedule.

61.

MVBC will interact with the community, be guided
in its programming decisions, and shape its service to ethnic communities,
through its Advisory Board. The Board members, all of whom have already been
appointed, are drawn from several ethnic groups. MVBC also plans to hire
approximately 135 staff members from the local ethnic communities it will
serve. The Commission expects Multivan to ensure that its hiring practices
reflect the diversity of Vancouver's population.

62.

The Commission notes the licensee's commitment
to apply for authority to add a re-transmitter to serve Victoria, following
approval of its application to serve Vancouver. The Commission encourages
Multivan to make such an application as soon as possible.

63.

The licensee has committed to spend $861,000
over the licence term on the development of scripts and concepts for
programs, and will offer a minimum of $30,000 in scholarships in each year of
operation. In the appendix to this decision, the Commission has set out a
number of conditions of licence, expectations, and encouragements related to
these and other matters concerning the programming and operation of the new
station.

Interventions

64.

The Commission acknowledges the interventions
submitted concerning these applications, and has considered all of them in
reaching its decision.

65.

The Commission notes in particular the
interventions from producers of programming for the Shaw Multicultural
service, and acknowledges the importance of those producers, and the
opportunities for all producers of third-language programming that the new
station represents.

Related CRTC documents

. Public Notice 2001-31 -
Report to the Governor in Council on the earliest possible establishment
of over-the-air television services that reflect and meet the needs of the
multicultural, multilingual and multiracial population of the Greater
Vancouver Area.

. Public Notice 2001-32 -
An ethnic television programming undertaking to serve Vancouver, British
Columbia

. Public Notice 2000-145
- Call for comments concerning over-the-air television services in
Vancouver - Order in Council P.C. 2000-1551

. Public Notice 1999-117 -
Ethnic Broadcasting Policy

. Public Notice 1999-97 -
Building on success - A policy framework for Canadian television

This decision is to be appended to the
licence. It is available in alternative format upon request, and may also be
examined at the following Internet site:
http://www.crtc.gc.ca

Appendix to Broadcasting Decision CRTC 2002-39

Terms

Subject to the requirements of this decision,
the Commission will issue a licence expiring 31 August 2008. This licence
will be subject to the conditions specified in this decision and in the
licence to be issued.

The licence will only be issued and effective
when the undertaking is ready to begin operation. When the licensee has
completed construction and is prepared to commence operation, it must advise
the Commission in writing. If the undertaking is not constructed and ready to
operate within 12 months of today's date, extensions to this time frame may
be granted, provided that the licensee applies in writing to the Commission
before the 12-month period or any extension of that period expires.

The new station will operate on channel 42C with
an effective radiated power of 40,000 watts.

Conditions

1. The licensee shall devote to the broadcast of ethnic programs 100% of
the total number of hours broadcast between 8:00 p.m. and 10:00 p.m. during
the aggregate of the broadcast days in each of the four- or five-week
periods in the calendar approved by the Commission and referred to in
subsection 9(1) of the Television Broadcasting Regulations, 1987.

3. The licensee shall broadcast ethnic programs in a minimum of 22
different languages monthly.

4. The licensee shall not devote more than 20 hours per week during the
period 6:00 a.m. to midnight, to the broadcasting of programs in South
Asian languages.

5. The licensee shall not devote more than 20 hours per week during the
period 6:00 a.m. to midnight, to the broadcasting of programs in Chinese
languages.

6. The licensee shall expend, over the course of the licence term, a
minimum of $4.5 million for the funding of independent productions by
residents of British Columbia.

7. The licensee shall caption 90% of all English-language programming
during the broadcast day, including 100% of all English news programming,
beginning in the sixth year of the licence term.

8. The licensee must adhere to the guidelines on gender portrayal set
out in the Canadian Association of Broadcasters' (CAB) Sex-role
portrayal code for television and radio programming, as amended from
time to time and approved by the Commission. The application of the
foregoing condition of licence will be suspended as long as the licensee
remains a member in good standing of the Canadian Broadcast Standards
Council (CBSC).

9. The licensee must adhere to the provisions of the CAB's Broadcast
code for advertising to children, as amended from time to time and
approved by the Commission.

10. The licensee must adhere to the guidelines on the depiction of
violence in television programming set out in the CAB's Voluntary code
regarding violence in television programming, as amended from time to
time and approved by the Commission. The application of the foregoing
condition of licence will be suspended as long as the licensee remains a
member in good standing of the CBSC.

Expectations and encouragements

1. The Commission expects the licensee to broadcast a minimum of 10
hours of third-language independent production during each week. This
programming will be produced by independent producers from British
Columbia, and will consist of a minimum of 5 hours of original programming.

2. The Commission expects the licensee to expend a minimum of $861,000
over the licence term, on script and concept development, excluding
overhead costs.

3. The Commission expects the licensee to broadcast a minimum of 55.5
hours of programming each week that has been produced in the Greater
Vancouver Area.

4. The Commission expects the licensee to expend a minimum of $210,000
over the licence term, to fund a scholarship initiative.

5. The Commission expects the licensee to ensure that its Advisory Board
consists of representatives from a variety of ethnic groups.

6. In addition to the requirements of condition of licence number 7 set
out above, the Commission expects the licensee to caption 90% of all
English-language programming during the broadcast day, including 100% of
its English news programming, by the beginning of the second year of
operation.

7. The Commission expects the licensee to caption, during each broadcast
week, a minimum of three hours of programming in Chinese languages.

8. In Public Notice CRTC
2001-88, Representation of cultural diversity on television -
Creation of an industry/community task force, the Commission called
upon the CAB to develop an action plan for a joint industry/community task
force. The role of this task force is to sponsor research, identify "best
practices", and help define the issues and present practical solutions to
ensure that the Canadian broadcasting system reflects all Canadians. In its
notice, the Commission emphasized the importance of having the
participation of all sectors of the broadcasting industry, including
specialty services. The Commission therefore expectsthe licensee:

· to adhere to its commitment to contribute to the work of the task
force;

· to contribute to a broadcasting system that accurately reflects the
presence in Canada of cultural and racial minorities and Aboriginal
peoples;

· to ensure that the on-screen portrayal of all such groups is accurate,
fair and free of stereotypes in all programming, both ethnic and
non-ethnic; and

· to ensure that its hiring practices reflect the diversity of
Vancouver's population.

9. The Commission encourages the licensee to produce some of its ethnic
programming with described video for the visually impaired.

10. The Commission encourages the licensee to acquire and broadcast
programs with described video, wherever possible.

11. The Commission encourages the licensee to file an application for a
transmitter to serve Victoria, as soon as possible.

Definitions:

"Script and concept development expenditures"
mean those expenditures, excluding overhead costs, that are incurred prior to
the commencement of pre-production and before the financing of the project is
in place. Spending on programs that are assured of going to air at the time
of the expenditure is not considered as script and development expenditures.

"Expend" and "expenditure" mean actual cash
outlay.

Dissenting opinion of Commissioner Cindy Grauer

I would have licensed CFMT's application
("LMTV") for an ethnic television station in Vancouver. LMTV would have
contributed more to the achievement of the goals of the Broadcasting Act, the
implementation of the Ethnic Policy and the Television Policy, the
multicultural communities in Vancouver, the system at large and the diversity
of programming available to Canadians.

LMTV offered $80 million in programming-related
expenditures compared to Multivan's $54 million. This included a fund of $27
million dollars, comprised of $4 million for development and $23 million to
fund in their entirety, each year of a seven year licence term, 20 third
language dramas and documentaries by British Columbia Ethnic Independent
Producers. This fund would have responded to the current lack of funding for
Canadian third language television production, and would have provided vital
support for the ethnic independent production community in Canada.

The LMTV application also attracted public
support that was far greater and more substantive than the support for
Multivan. Virtually every ethnic organization in the community and many from
across the country lent their support to the LMTV application. Intervenor
after intervenor spoke of the eight years of committed and meaningful
consultation that CFMT had engaged in with the community. It is clear from
both the written and oral interventions that individuals and organizations
alike have developed a deep respect for and strong and trusting relationships
with CFMT. There is a very strong sense of community ownership of the LMTV
proposal.

I disagree with the view of the majority that
local ethnic ownership should have been the determining factor in awarding
this licence. While the majority's position on ownership is clear, the
foundation upon which it rests is difficult to identify. Neither the
Broadcasting Act nor the Commission's policies nor the Call for applications
in the present proceeding attached any significance to local ownership. It is
troubling to me that, in the current policy environment and given the
criteria identified in the Call, the majority has chosen to base its decision
on a previously unidentified factor.

Local and/or ethnic ownership does not in and of
itself ensure a commitment to or investment in the development of the
creative talent in a given community. Nor does it ensure diversity.
Nevertheless, had the two applications been comparable on their merits, or if
the local ethnic community had demonstrated significant support for
Multivan's application, a case could perhaps be made that the issue of
ownership had merit as a determining factor. But that is not the case here.

Finally, I do not share the majority's doubts
about the commitment of LMTV to the on air exposure of productions that would
have resulted from its Ethnic Independent Producers Initiative.

During the hearing, CFMT was questioned by the
panel about their plans to schedule and broadcast the programs. Their
response is on page 103 of the transcript:

Ms. Mirsky: "Its an hour (8:00 p.m. Sunday on
LMTV) every week, it's a 52 week year, and as I said, it could be two
half-hour projects or it would be a one-hour. So over the course of a 52-week
year, there's ample opportunity for the regular scheduled programs. And I
want to add that the CFMT licence fee is guaranteed and it's a pre-buy. "

The majority has not given any reasons for its
doubts as to scheduling. Given the response by the applicant at the hearing I
have difficulty understanding where their doubts lie.

For all these reasons, I would have awarded the
licence to LMTV.

Dissenting Opinion of Commissioner Martha Wilson

I disagree with the majority in this matter and
would have licensed CFMT's application for an ethnic over-the-air television
station in Vancouver for all the reasons articulated by Commissioner Grauer.

In my view, the record demonstrates that there
was overwhelming support for CFMT's application by the ethnic communities of
Vancouver and British Columbia. It is a level of support that has been built
up over a long number of years as Vancouver's ethnic communities have
struggled to launch an over-the-air television service in the third largest
market in Canada with the second most ethnically diverse population in the
country. As Commissioner Grauer points out, the nature of the relationship
between CFMT and Vancouver's ethnic communities is such that, notwithstanding
the fact that CFMT would be the owner of the station, these communities feel
a sense of ownership resulting from their input into and development of the
application over the last eight years. In my view, this support by the major
ethnic organizations and senior members of the ethnic communities should have
played a larger role in the decision.

The second area which clearly sets CFMT's
application apart from Multivan's is with respect to their funding
initiatives for independent production. These initiatives are significant,
not only for the Vancouver ethnic communities, but for the entire
third-language broadcasting system. With the funding proposed in CFMT's
applicaton, third-language production - for which there is no other funding
available in the country - would have taken a giant step forward across the
entire ethnic broadcasting system. It is a missed opportunity on a very large
scale.

Ultimately, a decision has been made which
relies on the principle of local ethnic ownership as the determining factor.
While it is impossible to argue that ethnic ownership is not a positive
thing, licensing decisions must be made based on a number of criteria which
balance adherence to principles against the tangible benefits to the
community and the system at large. In my view, the balance has not been
achieved with this decision.